Article 1, paragraph 52 of Law 30th December 2023, no. 213 ("Budget Law 2024") has reintroduced the possibility of affranchising capital gains related to buildable or agricultural lands by paying a substitute tax with a 16% rate. Therefore, the rate provided for 2023 is confirmed.

This possibility is granted to natural persons, simple partnerships, non-commercial entities and non-resident subjects whose capital gains are taxable in Italy.

The tax can be settled in a single solution or three annual instalments.

Reference can be made to the conclusions reached in the past on several aspects of this substitute tax that has constantly been re-proposed since 2001, although with progressive increases of the applicable rate.

Therefore:

• It is possible to compensate for the due tax with the one already paid in the past, if any;
• A share of co-ownership right can be revalued, as well as the usufruct or the bare ownership right or even a physical portion of a wider cadastral parcel;
• Heirs cannot take advantage of the revaluation of the deceased nor ask for a refund of the substitute tax paid by the latter;
• It is possible to sell at a lower price than the appraisal one and keep the effects of the revaluation (subject to the corretion of AdE for indirect tax purposes);

The report can be drafted by engineers, architects, surveyors, agronomists, agrotechnicians, land experts, building industrial experts and experts registered at the Chamber of Commerce, even after the sale as long as it is by 30th June 2024.

The plots of land must be owned at the date of 1st January 2024.

Studio Notarile Associato Gambacorta

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